“This was probably the number one issue for the banks so the fact that it has been concluded and that there is 2½ years to get there is a significant positive,” said Dion Hershan, Managing Director of fund manager Yarra Capital Management.

“To get from where they are to where they need to be is only a modest change, it is not a radical change. It is the equivalent of a couple of months of profit in an industry that generates $30bn a year.”

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